Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

Investment

COVID-19 hits Ericsson's MEA sales

Article Image
Ericsson's third quarter sales in the Middle East and Africa (MEA) saw a 9% drop year-on-year, to 5.5 billion Swedish kronor (US$630 million), due to macroeconomic uncertainty related to COVID-19 and delayed investments in the region.

The decline was reported in the group's third quarter results, released on Wednesday, and show that the region's sales did however grow by 2% quarter-on-quarter. The MEA region makes up about 10% of group sales.

Ericsson's Middle East and Africa region makes up about 10% of group sales.  (Image source: Ericsson)
Ericsson's Middle East and Africa region makes up about 10% of group sales.
(Image source: Ericsson)

Ericsson said that continued 5G deployments in the Middle East contributed positively to the region's revenue and that managed services sales remained stable, but delayed investments specifically in the networks and digital services segments in Africa pulled MEA sales down.

In fact, quarterly sales in the networks and digital services segments each saw an 11% decline year-on-year, while the category listed as "emerging business and other" dropped by 67%. Managed services for the region however did grow 5% during the year.

Overall, the group's headline sales were up just 1% year-on-year for the third quarter, to SEK57.5 billion ($6.6 billion). North East Asia was the shining star of the group with SEK2.4 billion ($280 million) in revenues, an increase of 39% on the previous year, mainly driven by 5G sales in Mainland China.

Read more on the group results on our sister site Light Reading.

— Paula Gilbert, Editor, Connecting Africa

Innovation hub

Story

African tech startup funding hits $3.3B in 2022

Investment in Africa's tech startup ecosystem passed $3 billion for the first time in 2022, with Nigeria taking the biggest piece of pie and fintech dominating other sectors, according to a report from Disrupt Africa.

Story

Connecting Africa Podcast: S2 Ep. 4 – Agri-fintech, from kibbutz to Kenya

The Connecting Africa Podcast team speak to Israeli-Kenyan startup Avenews' co-founder and CEO, Shalom Ben-Or, about his fintech super-app that has been built specifically for Africa's agriculture industry.

More Innovation hub

Flash poll

All polls

Partner perspectives

All Partner Perspectives

Africa Tech Perspectives

Story

Women in Tech: Spotlight on inclusivity with Digital Council Africa's Juanita Clark

Digital Council Africa founder and CEO, Juanita Clark, talks to Connecting Africa as part of our Women's Month series about her career and what needs to be done to make the tech industry intentionally inclusive.

Story

Women in Tech: Spotlight on legal tech with Life.file's Sinal Govender

Life.file co-founder, Sinal Govender, talks to Connecting Africa as part of our Women's Month series about her career and how we can encourage more young girls to enter the legal tech field.

Story

Digital inclusion as a catalyst for economic empowerment: Mastercard's Imelda Ngunzu

Mastercard's Imelda Ngunzu talks to Connecting Africa about how digital payment solutions and mobile money are transforming the lives of small business owners, women and marginalized groups in East Africa.

More AfricaCom perspectives

Latest video

More videos

Industry announcements

More Industry announcements

Guest Perspectives

Story

Omdia View: July 2022

By Omdia Analysts

Kenya and Zambia move towards 5G with new spectrum allocations while Tunisie Telecom plans to shut down its 3G network - that and more in this month's Omdia View.

Story

Omdia View: June 2022

By Omdia Analysts

5G was the major news trend across Africa in June, as Orange became the first operator to launch 5G in Réunion and operators in Senegal accelerated their 5G plans despite spectrum delays.

More Guest Perspectives

Sponsored video

More videos

Like us on Facebook

Newsletter Sign Up


Sign Up